Sphere Of Influence

Sphere Of Influence
PROSPECTING PEOPLE
YOU KNOW
Mike Devlin
Keller Williams Realty Silicon Valley – San Jose
Gateway
Business Plan
 Establish Goals. What is it that you want?
 Make a plan to reach each goal.
 Can you see yourself working the plan?
 Have you set deadlines? Scheduling is the key to getting things
done.
 Put the plan into action.
 Are you working the plan?
The 90-day Rule
 Whatever you are doing right now, today, will affect your
business in 90 days.
 Don't get wrapped up in your sales and forget to prospect.
 80% of your time should be spent prospecting when new.
Time
 The most important function of a salesperson is to get
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clients.
80% of time should be spent on this activity until busy
servicing clients.
40 hour week x .80 = 32 hours per week divided by 5 days
= 6.4 hours per day.
20 hour week x .80 = 16 hours per week divided by 5 days
= 3.2 hours per day.
We would be happy with 1 hour a day.
Generate Leads with Your Database
“No matter how you
slice it, lead generation
will almost always come
down to a game of
numbers.”
Gary Keller,
The Millionaire Real Estate Agent, page
136
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
SLIDE <#>
July 5, 2012
Generate Leads with Your Database
MREA Strategic Model for Generating Leads and Building
Relationships
General Public
Haven’t Mets
Target Group
Your Contacts
Mets
Allied
Resources
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
SLIDE <#>
July 5, 2012
Generate Leads with Your Database
MREA Strategic Model for Generating Leads and Building
Relationships
General Public
Haven’t Mets
Target Group
Your Contacts
Mets
Allied
Resources
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
Your Strategy 
Move people
from outer
circles to inner
circles
SLIDE <#>
July 5, 2012
Generate Leads with Your Database
MREA Strategic Model for Generating Leads and Building
Relationships
General Public
Haven’t Mets
Target Group
Your Contacts
Mets
Allied
Resources
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
Everyone in your
Met Group first
goes into an
8 x 8 program,
which is then
followed by a
33 Touch
SLIDE <#>
July 5, 2012
Generate Leads with Your Database
MREA Strategic Model for Generating Leads and Building
Relationships
General Public
Haven’t Mets
Target Group
Your Contacts
Mets
Allied
Resources
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
Put your Target
Group on a
12 Direct
campaign to
create an
awareness of
your brand
SLIDE <#>
July 5, 2012
Generate Leads with Your Database
MREA Strategic Model for Generating Leads and Building
Relationships
General Public
Haven’t Mets
Target Group
Your Contacts
Mets
Allied
Resources
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
Use a wide variety
of prospecting and
marketing
techniques to
generate leads
from the General
Public
SLIDE <#>
July 5, 2012
Put MREA Model into Action with eEdge
Consolidate your contacts in one place
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
SLIDE <#>
July 5, 2012
Put MREA Model into Action with eEdge
Break Out Your Contacts into Groups
Allied Resources
Haven’t Mets
Buyers
Sellers
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
SLIDE <#>
July 5, 2012
Put MREA Model into Action with eEdge
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
SLIDE <#>
July 5, 2012
Put MREA Model into Action with eEdge
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
SLIDE <#>
July 5, 2012
Feed Your Database Every Day
A Closer Look at Your Mets
Inner Circle
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
SLIDE <#>
July 5, 2012
Feed Your Database Every Day
A Closer Look at Your Mets
Hidden Circles
found by Social
Media
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
SLIDE <#>
July 5, 2012
Feed Your Database Every Day
Your Mets Online
Google+ Circles
LinkedIn
Facebook
Twitter
Grow Your Business with KW Technology
BREAKOUT CLASS TITLE
SLIDE <#>
July 5, 2012
Business Development Cycle
 Meeting people.
 Eliminating rejection.
 Repeat.
 Promote
Meeting people
 You are the product that must be sold to the consumer.
 People who don’t know your product, will not use your
product.
 People will choose you from among the hundreds of agents
available because they know you, or at least know of you,
and what it is you do for a living.
 Home-sellers and homebuyers most often use an agent’s
services because they know, like and trust that agent.
Meeting people
 There is a direct correlation between the number of people
you meet and the number of transactions you close.
 If you are getting your name and face in front of a lot of
people, you win.
 If you are sitting in the office expecting the business to
come to you, you lose.
 If you want to do more business, meet more people.
Understanding Prospecting
 Active prospecting, or making direct, two-way contact
with potential clients provides the most leads per contact.
 Conducted via face-to-face or telephone conversations,
active prospecting is valuable because you can gauge the
prospect's interest and desire to work with you more
accurately.
 Examples of active prospecting include door knocking,
holding buyer/seller seminars, open houses and making
telephone calls.
Understanding Prospecting
 Passive prospecting, or one-way contact, is a less
effective method of obtaining leads.
 This includes paper mail, email, online or through publicity
efforts.
 Examples include sending direct mail letters to members of
your farm, developing and releasing press releases, or
distributing electronic newsletters.
Eliminating rejection
 The fear of rejection causes most agents to avoid meeting
people and, therefore, most of the failure in the real estate
industry.
 For an agent to be successful in making new contacts, they
must do one of two things, overcome the fear of rejection,
or eliminate the rejection so they no longer have to be
afraid.
 It makes more sense to eliminate rejection, by eliminating
its cause, than to learn to live with it.
Eliminating rejection
 Most rejection is caused by the simple fact that when we
interrupt people, to ask if they have a need for our services,
we give them nothing of value in return.
 It is a win-lose situation. We win. The consumer loses.
 We have the opportunity to generate a lead. They have the
inconvenience of having their private time interrupted.
Eliminating rejection
 What is a win-win prospecting method?
 You, the agent, have the opportunity to meet a potential buyer or
seller.
 The homeowner receives something of value. You both win!
 Something of value for the homeowner can be as simple as
information, a unique handout or flyer, home maintenance
tips, a calendar of local events or anything that would be
perceived as a fair exchange for the use of the homeowner’s
time.
Dynamics Of Expanding Sphere
 Make contact with 10 new people a day, 5 days a week, 50
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weeks a year.
50 per week x 50 weeks = 2,500 contacts
Divided by 15 years = 166 transactions a year
10% = 16 transactions
Not include expose to their sphere of influence
Dynamics Of Expanding Sphere
You know or come to know 100 people.
They let you know of others wanting to buy or sell property.
Say that each of them know as least 20 people.
100 x 20 = 2,000 people in your sphere of influence.
People move once every 15 years.
2,000 divided by 15 equals 133 potential transactions.
Assume that each listing or selling commissions is worth $7,500 to
a salesperson. That's $15,000 potential per transaction.
 $15,000 x 133 transactions = 1.9 million potential yearly income
from your sphere of influence.
 10% of 1.6 million is $190,000 per year! 5% of 1.6 million is
$100,000 per year!
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Sphere of Influence in Real Estate
 Definition: A group of people upon which you have
influence because they know you. Includes family, friends,
those with whom you do business, fellow organization or
club members, etc.
 Increasing your sphere of influence should be an ongoing goal
that will pay off in business over time.
 Also Known As: SOI
Finding an Agent
 The most common way for both buyers (40%) and sellers
(38%) to find an agent is when a friend, neighbour or
relative refer someone.
 This reinforces the importance of
 Staying top of mind with your past clients and sphere of influence,
and
 Asking for referrals.
2012 Profile of Home Buyers and Sellers (NAR)
Sphere of Influence
 You already have a sphere of influence.
 You have family, friends, schoolmates, business associates,
soccer buddies, etc.
 These are people that know you, and because of that, you have
some influence on them.
 You should always plan to grow this group.
 This will become a huge source of repeat and referral
business over time.
Sphere Of Influence
 People would rather do business with someone they know
and trust than with a stranger.
 Most people use the same accountant, car repair shop and
doctor again and again.
 The same people who know you and like you automatically
comprise a network that represents the strongest base of
potential clients.
 Not only potential clients, but referral sources.
Sphere Of Influence
 We encounter new faces visiting clients, attending social
gatherings, and waiting in line for a cup of coffee.
 Always have your business cards with you.
 May want to carry notebook or so you can write down
names and contact information.
 Wear KW career apparel and/or name badge.
Business Cards
 1,000 cards handed out
 5% respond = 50 responses
 10% of responses result in a transaction = 5 transactions
 $10,000 commission x 5 transactions = $50,000
Make contact the way you usually do.
 You could produce a nice letter in envelopes and mail via first
class mail.
 If you're making a really large contact list, many of them will
be people you usually talk to via email, text messaging or
phone.
 Contact them the way you always have; split your list into
groups by contact method.
Categorize by how you know them.
 You want to have certain common types by which to identify
contacts.
 If you're using Outlook, you can use the "Categories" function
for this.
 You would have categories for Friends, Family, Vendors
(doctor, lawyer, local grocer, etc.), Buyer Prospect, Seller
Prospect, etc.
 The buyer and seller prospect categories are for those new
ones you're about to get.
Plan ongoing contact and do it!
 Make a plan for how often you want to contact them.
 This can vary by type, such as family will not need a lot of
follow-up, etc.
 Follow the plan and make regular contact.
 There's nothing worse than finding out a good friend bought
a home elsewhere because they forgot about you.
Do some quick list-building activities.
 Get involved in community activities, go to homeowner
association meetings, give out your business card to the
person behind the dry cleaner counter.
 If you go for coffee in the mornings alone, stop getting a
table and sit at the counter. Strike up a conversation with the
person next to you.
Define and Rate Sphere of Influence
 A = someone likely to refer to you
 B = someone who with a little more contact with you, would
refer to you
 C = Questionable
 D = Delete
Send an Item of Value each month
 What do you send to your sphere of influence?
 Is it something you would want to receive and find valuable?
 How many creative Items of Value can you come up with?
Make it a daily ritual
 Calling daily some people out of your sphere of influence is
essential. Even one a day is OK.
 Call several times a day if you want your income to raise
quickly.
 Decide when to make calls and keep at it until you’ve
reached the people you were trying to call.
 Several weeks after doing this, it will feel a lot easier.
Overcome your blocks to calling
 “I don’t want them to think I want something from them”
 “I’m afraid they won’t like me”
 “I don’t want to be like a telemarketer”
Overcome your blocks to calling
 If you send an Item of Value , you are giving, when you chat
with them and listen to what’s going on in their lives, you’re
giving again.
 At the end of the call, say something like, “Oh by the way, if
you hear of anyone even whispering about buying selling a
home, please give me a call with their name and number.”
 “I’ll be happy to send referrals to your business, as well.”
Overcome your blocks to calling
 After calling monthly (after mailing Items of Value) you’ll
begin to know your sphere of influence and they’ll know you.
 You’ll learn which are A’s, B’s, C’s and which ones to delete.
 You’ll be in their stream of consciousness; the first one
they’ll think of when they think of real estate.
 Don’t be surprised if you get referrals in the first few weeks.
Making Contact
 Ask them if they currently have any personal need of a
professional Realtor in either the area of buying or selling
their own residence.
 Any friends, relative, neighbors or acquaintances that have a
need of a professional Realtor?
 Don't use the words “real estate agent.” “Professional Realtor”
sounds better.
Tips For Working A Sphere Of Influence
 1. Meet people.Whenever you talk with someone, let them
know you are in real estate. Make it a habit to work it into your
conversation.
 "The only way people in my profession come to know about
people buying or selling real estate is through people kind enough
to let us know when they hear of someone. Could you help me
out? Do you happen to know of anyone who might be considering
buying or selling real estate ?"
 If the person says "no", give him or her a business card and say,
"Here is one of my cards. If you happen to hear of anyone thinking
of buying or selling real estate, will you keep me in mind?" If they
say "yes" to this question, they have just committed themselves to
helping you.
Making Contact
 Don't just give people a business card; make a specific
request of them to help you.
 Rather than saying “please send me some referrals,” let your friends,
relatives, acquaintances and contacts know that you are out to
“build your business.”
 Make this a specific request of your sphere of influence and
look them in the eye and ask “can I count on you for it?”
Making Contact
 When you see the same people again, they are going to have a
sense of wanting to do something to help you.
 When they say “Hey Susan, how is the real estate business going?”,
you have a response of “Well, it's going all right. By the way
George, I want to make sure that you still have my cards and my
promotional brochure. Do you need some more ?”
Making Contact
 Must hear from you six times prior to remembering you on a
conscious level.
 If you mail to people six times, they still may not
automatically refer people to you.
 Better to send professional letter and personal brochure to all
the people that you know, and then follow up with a
telephone call.
Tips For Working A Sphere Of Influence
 2. Put them into your eEdge Database. Keep a record
of names, addresses, phone numbers, and personal data on
each person for future reference. This file should be updated
with personal data to help develop future conversations.
 3. Send each person a "thank you" note. In the note,
write: "...I just want to say thank you for saying you will
keep me in mind when you hear of someone interested in
buying or selling real estate. I really do appreciate your
consideration. Hope to talk to you soon."
Tips For Working A Sphere Of Influence
 4. Get back personally to each person within two weeks of
the first contact and at least every 30 days thereafter. Try to
accomplish the following in this order.
 A. Work to build a friendly relationship. This can be done by talking
about them. Don't spend more than a couple of minutes or you will
become a nuisance.
 B. Thank them again for remembering you. "I just wanted to say think
you again personally for saying you would keep me in mind if you hear
of anyone considering buying or selling real estate. The only way I can be
successful in my profession is through people like you considerate
enough to keep me in mind when they run across someone considering
buying or selling real estate.“
 C. Remind them of their commitment to you. "Since the last time we
talked, have you run across anyone considering buying or selling?"
Tips For Working A Sphere Of Influence
 5. Get back in touch with each person, either face to
face or via telephone, at least once every thirty
days. Use each visit to build the relationship, educate, and to
ask if he or she has come across anyone interested in buying
or selling real estate since your last meeting.You will not get
a lead unless you ask. Follow the format (a, b, and c) above.
Tips For Working A Sphere Of Influence
 6. When you get a lead from one of these people
compensate them with gratitude and appreciation.
Give each prospect referred to you 100% of yourself. Ask
your customers and clients to thank the person who referred
them to you. When someone gives you a lead shower them
with gratitude. "You know, we never would have met if it
hadn't been for Bob. Would you do me a favor and make it a
point to let him know I was able to help you and thank him
for introducing us?" And then to Bob say, "I wouldn't be
successful in my career if it wasn't for people like you helping
me. Thanks for your help. I appreciate it."
Tips For Working A Sphere Of Influence
 7. Never forget to stay in touch every 30 days. The best
source of referral leads are past customers, clients, and people
who have referred you to others. If you don't stay in touch they
will soon forget you and the quality of your service. If you want to
get and continue to get referrals from these people you must stay
in touch at least once every 30 days. It is not their job to
remember you, but your job to remind them.
 8. Evaluate each person in your sphere of influence and
stop talking to those who haven't given you a lead
within a reasonable period of time, maximum 6 months.
Always recruit more people into your sphere of influence to
replace the unproductive ones.
101 Lead Generation Ideas
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1.
2.
3.
4.
Main Ideas
Consider the many possibilities.
Choose three methods.
Create an action plan for each one.
Identify an accountability partner.
101 Lead Generation Ideas
57
101 Ideas to Consider
1.
2.
3.
4.
5.
6.
Garage sales
Car dealer
Furniture sales
Mortgage companies
Title companies
Inspectors
101 Lead Generation Ideas
58
101 Ideas to Consider
Appraisers
8. Moving companies
9. Facebook
10. Twitter
11. Chamber of commerce
12. Airlines
7.
101 Lead Generation Ideas
59
101 Ideas to Consider
13. High school/Middle school/Elementary
14. PTA
15. Volunteer for school trips
16. Band
17. Choir
18. Sports/Booster clubs
101 Lead Generation Ideas
60
101 Ideas to Consider
19. Teachers
20. Principals
21. Divorces
22. Judges
23. Charities
24. HOA associations
101 Lead Generation Ideas
61
101 Ideas to Consider
25. RELO companies
26. Girl/Boy Scouts
27. Running clubs
28. Biking clubs
29. Ski clubs
30. Gyms/Personal trainers
101 Lead Generation Ideas
62
101 Ideas to Consider
31. New home builder reps
32. Building co-owners
33. HUD
34. VA
35. Bank/Short sales
36. Open houses
101 Lead Generation Ideas
63
101 Ideas to Consider
37. Country clubs
38. Real estate agents
39. NAR
40. CAR
41. GRI/CRS/WCR
42. Realtor seminars
101 Lead Generation Ideas
64
101 Ideas to Consider
43. College alumni associations
44. MREI seminars for investors
45. First-time buyer seminars
46. Urban seminars
47. Weddings
48. Move-in parties
101 Lead Generation Ideas
65
101 Ideas to Consider
49. Before-market preview parties
50. Apartment pool areas—grab
your swimsuit?
51. Apartment representatives
52. Parades
53. City holiday celebrations
101 Lead Generation Ideas
66
101 Ideas to Consider
54. Whole Foods
55. Nursing homes
56. Bunco/Poker parties
57. Your past work functions
58. Past spouses
59. Singles organizations
101 Lead Generation Ideas
67
101 Ideas to Consider
60. Cleaners
61. Starbucks
62. Doctors
63. Marriage counselors
64. CPA
65. KW Regional Directors
101 Lead Generation Ideas
68
101 Ideas to Consider
66. KW Team Leaders
67. KW MCAs
68. Teach
69. Billboards
70. Shopping carts
71. Places of worship
101 Lead Generation Ideas
69
101 Ideas to Consider
72. Craigslist
73. Newspapers
74. Local magazines
75. Theaters
76. TV
77. Radio
101 Lead Generation Ideas
70
101 Ideas to Consider
78. Back of your laptop
79. Restaurants
80. Networking groups/BNI
81. Financial planners
82. Stockbrokers
83. Door knocking
101 Lead Generation Ideas
71
101 Ideas to Consider
84. Expired listings/FSBOs
85. Go to the malls
86. Professional building search
87. Horse shows
88. Car shows
89. Farm an area
101 Lead Generation Ideas
72
101 Ideas to Consider
90. Hotels
91. Hospitals
92. Rental cars
93. Taxis
94. Dairy Queens
95. Goodwills
101 Lead Generation Ideas
73
101 Ideas to Consider
96. Hair salons/Nails
97. Blood banks
98. Golf courses
99. Banks
100. Gas stations
101. Lamaze classes
101 Lead Generation Ideas
74
Step 1: Your Top Three Picks
 Choose three methods best suited to you.
 You can try others later, but focus on these first.
 Make these avenues your top priority every day.
101 Lead Generation Ideas
75
Time to Act
“To accomplish great things,
one must not only think—one must
ACT.”
The Beginning
101 Lead Generation Ideas
76
Step 2: Action Plan
 Create an action plan for each method.
101 Lead Generation Ideas
77
Step 3: Accountability
 Find a partner who cares about your success.
 Their job is to hold you accountable.
101 Lead Generation Ideas
78
Ideas into Action
1.
2.
3.
Decide which three methods best suit you.
Create an action plan for each of them.
Get support from an accountability partner.
101 Lead Generation Ideas
79
Online Customer Relationship Marketing
 Repeat business and referrals remain your most profitable
source of business.
 Customer relationship marketing (CRM).
 Lifetime Value is the TOTAL dollar value every client and
every affiliation brings to your practice over the lifetime of
your relationship.
Lifetime Value
 The FIRST value is the “Single-Transaction Value” every client
brings you. For most agents this is the Lifetime Value.
 The SECOND value is “Transaction Multiplier” value. A listing
should bring at least two new buyers and another listing in the
area.
 The THIRD value is the “Repeat Business” Value. The average home
ownership in this country is about 5.5 years.
 The FOURTH value is the “Referral” value. Clients who are
acquired by a referral are very high quality (i.e. they are easier to
work with, easier to close, and provide the fewest problems), and
they refer others just like themselves.
Strategies to Build Referrals and Gain
Repeat Business
 Communicate regularly with your past clients, and
others in your sphere of influence.
 Take advantage of all available online and offline methods
to express your professionalism and continued interest.
 At the end of each communication, always ask for a
referral, and don't be bashful about it.
Repeat and referral business
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Strive to average at least one new referral client per
transaction.
Don't be shy.
Make it your policy that closings are never truly
closed until you have asked for referrals from all the
players.
Activate a business-building campaign after each
closing that includes e-mails, faxes, phone calls, and
follow-up-letters to the buyer, the seller, friends, coworkers, neighbors, etc.
Follow-up is critical
 Your ultimate objective is to pull as many referrals as possible into
the "Lifetime Marketing Cycle."
 This all-important cycle begins with lead generation and
acquisition, moves on to prospect follow-up and conversion, and
long-term contact and retention, which, in turn, provides more
referrals.
 Effective customer relationship marketing calls for quick followup at each step of the lifetime marketing cycle.
 The biggest mistake you can make after asking for, and getting
referrals is the failure to follow up with a series of targeted
communications.
Online Professional Worksheet
 Current Position
 Company Name, Title, Time Period, Description.
 Professional Summary
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Your professional “headline”
Your primary industry of expertise
Specialties you have in your industries of expertise
Summary of your professional experience and goals
 Prior Experience
 Company Name, Title, Time Period, Description
 Education
 School, Years
 Additional Information
 Websites, Groups/Associations, Interests